What to Remember Before Getting a Reloadable Prepaid Card
Those who want to manage their money properly and are looking for an effective way to curb overspending would be glad to know they have an awesome ally in reloadable prepaid cards.
While considered relatively new compared to other plastic cards, reloadable prepaid cards are deemed one of the most ingenious financial tools available nowadays. Thanks to their peerless benefits and the ease and convenience they offer, many people now use reloadable prepaid cards for their day-to-day transactions.
Over the years, reloadable prepaid cards have experienced a massive rise in popularity and have not shown any signs of slowing down. This does not come as a surprise however as more and more people are discovering all the amazing benefits they offer. Not only that, many people are also now using prepaid cards to supplement some of the banking services they are accustomed to.
Also known as pay-as-you-go cards, prepaid cards work just like most credit cards when used for purchase transactions. However, while they have something in common with credit cards, there is one distinct difference between the two: prepaid cardholders will be spending their own money and not borrowing from the card issuer.
This also means money has to be loaded on the prepaid card before it can be used for ATM withdrawals or purchase transactions. Once the balance on the card has been depleted, prepaid card users won’t be able to use the card for the time being. Fortunately, they have the option to load any amount they want at any time they deem convenient.
What’s even better? Loading money onto a reloadable prepaid card is both quick and straightforward. As soon as the balance has been loaded successfully, people can immediately use it for any purchase transactions or withdrawals.
Getting a Reloadable Prepaid Card? Read This First!
If you’re like most people, you most likely own a prepaid card already or you’re considering getting one. If you belong to the latter, below are some of the things you need to remember before getting a reloadable prepaid card:
How They Work
Oftentimes, many people mistake reloadable prepaid cards for the typical debit and credit cards. This is because most plastic cards are almost identical in terms of appearance. Just like its other counterparts, reloadable prepaid cards have a card number as well as a magnetic strip. In addition, prepaid cards also have smart chips for added security.
When used for purchase transactions, reloadable prepaid cards work almost like credit cards. In other words, the card number is typed in when used for transactions online and the card is swiped when used at retail stores.
When it comes to loading money onto the card, there are several options available. Some of the most common options used to load money on the card include:
- Loading through stores/outlets
- From bank to the card
- Direct deposits
- Via a secure login portal
As mentioned earlier, reloadable prepaid cards can be used immediately once money has been loaded on the card successfully. While they share similar features with other plastic cards, it is important to keep in mind they have massive differences in terms of function so it would be best to find out all there is to know about the card in terms of features.
Lastly, prepaid cards can be a reliable ally for those who would like to keep their spending in check. With a reloadable prepaid card, it’s easy to track expenses and other transactions. Also, since you will be using your own money and not that of the bank, you can avoid spending more than you’re supposed to. In addition, you’ll also be spared from paying costly interests, charges, and other fees.